ST. LOUIS - Starting on New Year's Day, minimum-wage workers across Missouri will see an increase in their hourly rates.

Missouri voters approved Proposition A in the November General Election to set the stage for minimum-wage increases over the next two years.

On Jan. 1, 2025, the state's minimum wage is set to increase to $13.75 per hour for workers of "all private and non-exempt businesses," according to the Missouri Department of Labor.

Despite the planned increase, some workers in some retail and service businesses may not directly earn $13.75 an hour.

When the state's new minimum wage rate takes effect New Year's Day, the state only requires employers to "pay tipped employees at least 50 percent of the minimum wage," along with "any amount necessary to bring the employee’s total compensation to a minimum of $13.75 per hour." The new state law would require workers under this criteria to make $6.88 per hour before tips, according to the Department of Labor.

The state adds that "employers engaged in retail or service businesses whose annual gross income is less than $500,000 are not required to pay the state minimum wage rate," which means these employers could theoretically pay wages below the state minimum of $13.75 per hour.

In accordance with Proposition A, the state plans to raise the minimum wage for workers of "all private and non-exempt businesses" to $13.75 next year and $15 in 2026. After that, the state will adjust "all future annual adjustments to the minimum wage based on the Consumer Price Index."

While some legal challenges have surfaced in an attempt to stop Proposition A from taking effect on Jan. 1, it's uncertain whether these efforts will gain enough momentum to succeed.

Proposition A also requires businesses with 15 or more employees to provide one hour of paid sick leave for every 30 hours worked.